With President Donald Trump set to serve his second term and some predicting that Republicans will hold majorities in both houses of Congress, many are now wondering what the future holds for the strangely named president. I have doubts. inflation control law.
During his campaign, Mr. Trump repeatedly made it clear that he was not a supporter of the bill, which passed on party-line votes in both houses of Congress, or of the hundreds of billions of dollars in green energy subsidies it included.
in Statement issued In a post-election memo, Sierra Club President Ben Jealous struck a gloomy note: time. “That’s exactly the kind of comment we would expect, given the major role played by the Sierra Club and other climate alarm groups in creating the IRA.
But even if Republicans control the House and Senate, complete abolition of the IRA is unlikely to succeed. The Republican majority is expected to be small, and the party has so far shown no ability to unite all members when voting on controversial issues. Therefore, a more scalpel-like approach seems more likely to be successful.
I asked Kerr Ingham, a respected oil economist and chairman of the Petroleum Economics Association. Texas Energy Producers Allianceif he thinks Trump and his administration will seek to repeal the Inflation Control Act altogether. “I certainly hope so,” Ingham said. Specifically, Ingham pointed to the need to abolish the “methane tax.” [waste emissions charge] In IRAs, and frankly, many of the spendthrifts in IRAs should simply be eliminated. ”
Tom Pyle, president of a think tank based in Washington, DC Energy Research InstitutePresident Trump said he believes a complete repeal of the law “absolutely should be pursued.” “While the massive subsidies built into the Inflation Control Act (IRA) are already destabilizing the power grid, the spending is fueling inflation even further, leading to soaring government deficits.”
Pyle also pointed out that President Trump has promised a variety of tax cuts for working Americans and families, and budget offsets need to be found for them. Pyle believes IRAs provide such an opportunity. “Eliminating subsidies for big business in exchange for tax cuts for working families is good policy and good politics,” he added.
However, American Petroleum Institute President Mike Somers his group said They favor preserving at least some key parts of the IRA, citing subsidies for carbon capture and storage (CCS) and hydrogen development, in particular. “We will advocate for the provisions we support and seek repeal of provisions that we believe are incompatible with continued production in our oil and gas state,” Somers told Politico. This is not surprising given that some of API’s key members are already making big bets on both CCS and hydrogen projects.
Additionally, since the IRA was signed in September 2022, renewable energy companies have invested hundreds of billions of dollars in wind, solar and electric vehicle projects, with the majority of those investments in key sectors. It is also important to remember what is being done. Republican states and counties.
said Jason Grumet, CEO of the American Clean Power Association. stated in a statement “Private sector investments in clean energy are bringing jobs and economic opportunities to small towns and rural areas across the country, while creating hundreds of new jobs in states where too many good jobs are going overseas. The factory is operational,” Gurmeet also said, adding that the IRA has They point to the fact that there was significant investment in both wind and solar power during President Trump’s first term, even without additional incentives through grants or tax breaks. , added that ACPA and its members are “fully committed.” I look forward to working with the Trump-Vance administration and the new Congress to continue this great American success story. ”
There is little doubt that the Trump administration will take a hard look at many of the IRA provisions, but given the political realities and the billions of dollars already invested in continuing these programs, complete repeal is unlikely. It seems very unlikely.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, specializing in public policy and communications.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
All content produced by the Daily Caller News Foundation, an independent, nonpartisan news distribution service, is available free of charge to legitimate news publishers with large audiences. All republished articles must include our logo, reporter byline, and DCNF affiliation. If you have any questions about our guidelines or our partnership, please contact us at licensing@dailycallernewsfoundation.org.
